1. Technical Field
This invention relates generally to a method and system for remotely extending credit, and more specifically to a paperless method and system for rapidly approving temporary credit extensions to a customer where the lender and customer are not face-to-face.
2. Background Art
Borrowing money has traditionally been a time-consuming, burdensome process. Extensive paperwork and form completion, combined with a lengthy approval process, make obtaining credit a daunting task. This is especially true for some borrowers who may not have extensive credit histories because they operate primarily on a cash transaction basis. For example, a student who used only cash during college may find himself without even a checking account, yet still in need of temporary credit. Many traditional lenders require detailed credit reports, existing checking accounts, and other indicia of credit worthiness prior to making a loan. Further, even where these financial requirements are in place, the completion of the necessary documents and approvals may take several days. A prospective borrower may have a more immediate need for cash.
In short, traditional, paper-based loans are cumbersome, slow, and are generally limited to those with established financial histories. They are cumbersome in the fact that they require mailing, faxing or otherwise obtaining of numerous documents, including payroll records, checking account statements, credit reports, and the like. They are slow because even approved borrowers may have to wait 72 hours or more prior to being able to access the funds. They are limited in that people who are paid in cash, or people like the college student mentioned above, may not have a sufficiently lengthy financial history to show a prospective lender that they are credit worthy.
There is thus a need for an improved method and system of extending credit that is faster, more convenient, and that offers expanded eligibility over traditional, paper-based systems.
Skilled artisans will appreciate that elements in the figures are illustrated for simplicity and clarity and have not necessarily been drawn to scale. For example, the dimensions of some of the elements in the figures may be exaggerated relative to other elements to help to improve understanding of embodiments of the present invention.